Marsh & McLennan Companies (MMC), which employs nearly 65,000 people, is about to become even bigger. Known for its units Marsh, Guy Carpenter, Mercer, and Oliver Wyman, the global professional services firm is snapping up Jardine Lloyd Thompson Group (JLT).
In its announcement today, MMC said it has reached an agreement to purchase the British insurance brokerage for consideration of £19.15 per share – a 33.7% premium, as JLT shares closed at £14.32 on September 17. Under the terms of the transaction, which has been approved by the boards of directors of both camps, the New York-headquartered group will acquire all issued, and to be issued, share capital of JLT in cash.
MMC noted that total cash consideration equates to US$5.6 billion in fully diluted equity value, or an estimated enterprise value of US$6.4 billion.
“The acquisition of Jardine Lloyd Thompson creates a compelling value proposition for our clients, our colleagues, and our shareholders,” said MMC president and chief executive Dan Glaser (pictured). “The complementary fit between our companies creates a platform to deliver exceptional service to clients and opportunities for our colleagues.
“On a personal level, I have come to know, and respect, Dominic Burke and his management team from my time both at MMC and as an underwriter. I am confident that with the addition of the talented colleagues of JLT, Marsh & McLennan will be an even stronger and more dynamic company.”
The completion of the deal will see Burke, group chief executive of JLT, come onboard as MMC vice chairman and executive committee member.
“I am enormously proud of what JLT has achieved, founded on our people, our culture, and our unwavering commitment to our clients,” he commented. “MMC is, and always has been, one of our most respected competitors and I believe that, combined, we will create a group that will truly stand as a beacon for our industry.”